871.6363/186: Telegram
The Minister in Rumania (Jay) to the Secretary of State
[Received 9 p.m.]
43. Mining law was signed by the King July 3, promulgated July 4, when it entered into effect.
Carefully made translation, hereinafter referred to, follows by mail. Steaua Romano Company is apparently not exempted at the end of ten years from nationalization requirements of article number 33. Article number 181, however, allows this company, inasmuch as it has 25 percent Roumanian capital and is of “great importance,” to secure an additional perimeter in each delimited oil-producing area. This Company alone of predominantly foreign companies fulfills these conditions and thereby profits from a discrimination.
This law is too complicated to report on adequately by telegram. Minister of Industry and Commerce told delegation of foreign oil interests they should not pay attention to letter of the law but rely on good will of the Government, accepting the assurances of the authors of the measure who alone were in a position to interpret it.
The Government would always allow a satisfactory modus operandi to be reached as difficulties might be encountered. However, general impression is that it will only be possible to evade the law successfully by employing the right intermediaries i. e. the Liberal banks and lawyers.